Cost | -300000 | |||
Transfer fees | -90000 | |||
Dismantling costs | -200000 | |||
Present value as on 1st July 2018 | ||||
Dismentaling costs | Allowance | |||
Future value | 200000 | Future value | 75000 | |
Rate | 6.30% | Rate | 6.30% | |
Useful life | 12 years | Useful life | 12 years | |
Present value | = Future Value/(1+r)^n | Present value | = Future Value/(1+r)^n | |
=200000*1/(1+0.063)^12 | =75000*1/(1+0.063)^12 | |||
=200000*0.480 | =75000*0.480 | |||
=96080 | =36000 | |||
Net costs | =96080-36000 | 60080 | ||
Present value as on 1st July 2019 | ||||
Future value | 220000 | |||
Rate | 6.30% | |||
Useful life | 11 years | |||
Present value | = Future Value/(1+r)^n | Present value | = Future Value/(1+r)^n | |
=220000*1/(1+0.063)^12 | =75000*1/(1+0.063)^11 | |||
=220000*0.511 | =75000*0.511 | |||
112345 | 38325 | |||
Net costs | =112345-38325 | 74020 |
Debit | Credit | |
Plant | 13940 | |
To Dismantalling liability | 13940 |
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